Cabinet Rejects Hotel and Mall Plans for Kampala’s Constitution Square

by BusinessTimes Ug
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Kampala’s Constitution Square will remain a protected public space after Cabinet rejected a proposal to redevelop part of the historic site into a commercial complex featuring a hotel and shopping mall, ending months of uncertainty over the future of one of the capital’s most prominent pieces of public land.

The decision, announced on October 27, 2026, followed a Cabinet meeting chaired by President Yoweri Museveni on October 26. Minister of ICT and National Guidance Justine Kasule Lumumba said the government had resolved to reverse the development proposal and retain the square’s existing legal status after considering its historical significance, legal protection, environmental value and urban planning implications.

“Cabinet has decided to reverse the proposal for the development of Constitutional Square, formerly known as City Square, and retain the site’s existing legal status,” Lumumba said during a press briefing at the Uganda Media Centre.

The decision halts a proposal by businessman Hajji Hassan Bulwadda to develop approximately two acres of the square into a modern, solar-powered real estate complex. The proposed facilities included a hotel, shopping mall and other commercial amenities.

Bulwadda had approached the President with the proposal in a letter dated August 18, 2026. On August 30, Museveni directed the Minister for Kampala Capital City and Metropolitan Affairs, Minsa Kabanda, to examine the proposal in consultation with Kampala Capital City Authority (KCCA) and report back.

The directive initiated a government review of a proposal that placed the potential commercial use of prime central Kampala land against the site’s established public and heritage functions. Importantly, the President’s directive called for an assessment of the proposal; it did not amount to a completed transfer of the land to the developer.

Constitution Square occupies approximately 1.172 hectares across plots 5, 6 and 7 in Kampala’s central business district. It contains the 1945 War Memorial, which commemorates Ugandan soldiers who died during the First and Second World Wars. Its location makes it a prominent public space within an area dominated by commercial buildings, offices, retail businesses and other urban activities.

According to the Uganda Media Centre, the square is a protected heritage site. Its protection is recognised under the Museums and Monuments Act, 2023, and a heritage protection instrument issued in 2024. The government also cited the site’s historical status and environmental contribution in explaining the decision to retain it in its existing form.

The proposed redevelopment had attracted support from Attorney General Sam Mayanja, who argued that the site could be modernised while retaining some green features. He had raised concerns about security and the condition of the square, arguing that a structured development could improve the appearance and management of the area.

However, the proposal faced opposition from Kampala political leaders and other stakeholders who questioned whether commercial development was compatible with the square’s public and historical significance.

Kampala Lord Mayor Ronald Balimwezo was among the strongest opponents. He argued that the square should remain open because of its environmental and civic importance, warning that the city could lose an important green space if the proposal proceeded.

“City Square must be left open. It is the City Square that helps us breathe, take in the air. It must not be played with,” Balimwezo said during the dispute.

Leader of the Opposition in Parliament Joel Ssenyonyi also questioned the proposed development and the extent to which public institutions and representatives had been involved in discussions about the future of the site.

The controversy extended beyond the design of the proposed complex to questions about the management and use of public land. The square’s central location gives it commercial appeal, but its existing legal protections and public functions complicate attempts to treat it like an ordinary development site.

For property developers, central Kampala offers opportunities for hotels, retail facilities, offices and mixed-use developments. Such projects can attract investment and create business activity, but their feasibility also depends on land ownership, planning requirements, environmental considerations and the legal status of proposed sites.

In this case, Cabinet’s decision means the proposed commercial complex will not proceed under the proposal submitted for government consideration. It also leaves the square’s existing legal protections intact rather than opening the site to the proposed commercial redevelopment.

Bulwadda subsequently acknowledged the decision, saying he would abandon his plan. In comments reported by local media, he said:

“Ugandans shouted, yet I had planned to bring development to Kampala. I now give up on City Square.”

The government’s announcement, however, leaves questions about the square’s future management. Preserving its legal status does not by itself explain how authorities will address maintenance, landscaping, security, public access and conservation.

These practical issues will determine how effectively the site continues to serve residents, workers and visitors in the city centre. The decision also places responsibility on the relevant public institutions to ensure that the square is maintained in line with its protected status.

With the commercial proposal withdrawn, attention shifts from whether the land should be redeveloped to how the existing public space can be protected and managed.

For Kampala, the outcome preserves a historic landmark in the middle of its commercial district while leaving unresolved the wider challenge of accommodating investment without compromising public assets.

Constitution Square will retain its existing status, and the proposed hotel and shopping complex will not proceed.

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